Judge Clears Vale-BHP Mine Restructuring But Blocks Payment Cap

A Brazilian judge approved the main parameters of a recovery plan for the iron-ore venture owned by Vale SA and BHP Group, while rejecting a key limit on compensation payments related to a 2015 dam disaster.

Judge Adilon Claver Resende authorized the debt restructuring plan that was agreed by the Samarco venture and most of its creditors, as expected. But in a surprise move, he turned down a proposed $1 billion cap on compensation.

Read more: Vale and BHP Reach Mine Restructuring Accord With Creditors

It’s the latest twist in the years-long restructuring process following a dam collapse that unleashed ...